FHA203K Designation Training
What Does this Mean for Potential Home Buyers?
The 203K Specialization Designation gives me an opportunity to work with home buyers and help guide them with purchasing a great home that needs some renovation and not to eliminate these homes just because of their current condition.
The 203K Specialization Designation is part of the REbuildUSA program which is a nationwide organization of real estate, lending and home improvement professionals working in partnership with Lowe’s. With Lowe’s as a partner in this program, the process becomes more simplified, as they can assist in identifying the scope of work, providing costs and help in the actual renovation process.
Buyers have the choice of working with Lowe’s on the project or hiring their own contractors. Not all lenders can participate in this program, only approved Lenders These lenders understand the process of getting a property approved for a 203K FHA loan. They are required to utilize the services of knowledgeable appraisers who do not compare apples to apples, but apples to lemons in determining the future value of a property.
There are essentially two FHA 203K programs – standard and streamlined. The standard can be used to completely redesign a home – and can include structural renovation, additions, moving walls, and so forth. There is no limit on the dollar amount for the Standard 203K, as long as it stays within the FHA loan limit guidelines currently at $625,500 for a single family home.
The FHA streamlined program is simpler and will work for homes that need minor updating with the total dollar limit at $35,000. For the first time home buyer this is significant, especially if after closing you don’t have any extra money for the repairs/remodel. If a home needs new flooring, kitchen and bathroom updates, roof, etc. all of these can be financed into your loan.
After going through the training I realized just how much potential the FHA 203K (which many say is a sleeper program) offers – especially for the first time home buyer.
To learn more about how this program can help you buy a home give me a call.
Filed under: Real Estate
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